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ISSUE 2
“Days after telling supporters to write “no tax on tips” on bills for service, Trump, in another proposal, would modify the tax code so that income taxes would be essentially replaced by tariffs on imports.”
The change could shine new light on what types of transactions can be characterized as tips, and taxpayers may seek to more loosely define the term to avoid taxes on those amounts.
amounts would alleviate a big part of Payroll’s gross-to-net calculation before payday, and income tax annual reconciliation and reporting would cease. State and local requirements would likely continue. Labor laws, like the minimum wage, overtime, and pay date requirements would remain, as well as the Social Security and Medicare taxes. While president, Trump put forward a paid leave plan for new parents that did not get the support needed to pass Congress and be enacted into law. It can be interesting to speculate on the impact his latest proposals could have on Payroll in the U.S. However, campaign promises often end up as just promises that are not fulfilled.
But this would all be moot if no income is to be taxed.
Days after telling supporters to write “no tax on tips” on bills for service, Trump, in another proposal, would modify the tax code so that income taxes would be essentially replaced by tariffs on imports. With no income tax, there definitely would no longer be a tax on tips. Operating without having to monitor, accrue and withhold federal income tax amounts from workers, as well as not having to remit and report those
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